On Monday, Baird maintained its Outperform rating and $32.00 price target for Instil Bio Inc (NASDAQ:TIL), expressing optimism following recent data from an external clinical trial. The trial results, which were presented at the World Conference on Lung Cancer (WCLC) 2024 on Sunday, showcased Akeso/Summit's ivonescimab, a PD-1xVEGF bispecific antibody, demonstrating a significant progression-free survival (PFS) benefit in the first-line treatment of non-small cell lung cancer (NSCLC).
The HARMONi-2 trial data revealed that patients treated with ivonescimab experienced a median PFS of 11.1 months, compared to 5.8 months for those treated with Keytruda, resulting in a hazard ratio (HR) of 0.51 and a p-value of less than 0.0001. This robust PFS benefit is expected to generate increased investor interest in the PD-1/L1xVEGF class of medications.
Baird's outlook for Instil Bio is buoyed by the anticipation that the positive reception of ivonescimab's trial outcomes will extend to Instil's own SYN-2510, a PD-L1xVEGF bispecific antibody. The firm suggests that the positive data from the trial could lead to heightened enthusiasm for this category of treatments, which would benefit Instil Bio, especially considering the current valuation gap between Instil and Summit.
Instil Bio's SYN-2510 is part of a similar class of drugs as Akeso/Summit's ivonescimab, and the positive results from the ivonescimab trial are seen as a good sign for Instil's product. The firm believes that the success of ivonescimab could hint at a promising future for Instil's SYN-2510 in treating NSCLC.
The maintained price target reflects Baird's continued confidence in Instil Bio's stock performance, as the market processes the implications of the recent clinical data and its potential read-through to Instil's pipeline. As the market evaluates this new information, Instil Bio's share value is anticipated to reflect the positive outlook for its PD-L1xVEGF bispecific antibody, SYN-2510.
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